Domino’s U.S. same-store sales rise 3.7% as $9.99 deals boost traffic

Domino's Pizza reported U.S. same-store sales rose 3.7% in the fourth quarter, beating analysts' estimate of 3.47% as the relaunch of a $9.99 "Best Deal Ever" promotion and new menu items drove traffic. The company said value offers, faster digital ordering and third-party partnerships expanded reach and sustained delivery demand.

Quarterly revenue came in at $1.54 billion, up 6.4% from $1.44 billion a year earlier, and operating income grew 8.0% to $295.7 million. Adjusted diluted earnings per share were $5.35, up from $4.89 a year ago but a shade below some analyst consensus figures cited by market trackers at $5.37 and $5.39. For the full fiscal year, Domino's reported robust free cash flow of $671.5 million, a 31.2% increase from $512.0 million the prior year.

The promotional push included the return of the "Best Deal Ever" at $9.99 and new items such as a Parmesan-stuffed crust pizza, both aimed at value-conscious customers. Domino's also pointed to partnerships with online delivery platforms, including DoorDash, and continued investment in its digital channels to speed delivery and reach more customers. Morningstar analyst Ari Felhandler said the chain is "stealing share in the U.S. pizza category" and credited the company's value menu and digital strategy for strengthening its position.

Internationally, same-store sales rose 0.7%, a weaker showing than U.S. growth and below the roughly 1.03% analysts had expected. The company noted sustained growth in many franchised markets but acknowledged heightened competition in regions such as Australia and Japan as global demand remains muted.

Operational metrics showed a mixed picture on margins. Supply chain gross margin ticked up to 11.4% from 11.3%, but U.S. company-owned store gross margin fell to 10.1% from 15.5%, with the decline attributed primarily to higher insurance costs and rising labor rates. Domino's added 392 net new stores globally during the quarter, contributing to net global store growth of 776 locations for the fiscal year.

The board approved a 15% increase in the quarterly dividend to $1.99 per share, payable March 30 with a record date of March 13, signaling confidence in cash generation even as some unit-level margins compress. CEO Russell Weiner framed the results as validation of the company's strategy, saying, "In 2025 we demonstrated that when we execute our Hungry for MORE strategy it delivers MORE sales, MORE stores, and MORE profits." He added, "As we look ahead to 2026, it is our expectation that we will meaningfully increase our market share within a US QSR pizza category that continues to grow." He also highlighted the international streak, noting, "In our international business, we delivered a remarkable 32nd consecutive year of same-store sales growth."

Investors appeared encouraged: shares traded higher after the report, with snapshots showing gains in the mid-single digits depending on the trading window. The results underscore how aggressive value pricing, a refreshed menu and digital distribution can drive visits even as consumers weigh options between eating out and cooking at home and as rivals roll out their own value offerings.